Highest Mileage Rate Ever
The IRS announced late last week an update auto mileage rate for the remaining six months of 2022.
Normally the IRS only announces the rate for a full year, however, in times of gasoline volitility, they will update it more quickly. Based on memory, this is the highest rate at 62.5 cents per mile up 4 cents. The medical mileage rate will also increase 4 cents to 22 cents per mile. The rate for charitable miles remains constant at 14 cents per mile.
The mileage rate is designed to incorporate all of the costs of using an auto including depreciation. This means that when you sell an auto where you took the mileage rate on a fair number of miles you are likely to owe some gain on the sale, especially with the rapid increase in used car prices.
Paul Neiffer is a certified public accountant and business advisor specializing in income taxation, accounting services, and succession planning for farmers and agribusiness processors. Paul is a principal with CliftonLarsonAllen in Walla Walla, Washington, as well as a regular speaker at national conferences and contributor at agweb.com. Raised on a farm in central Washington, he has been immersed in the ag industry his entire life, including the last 30 years professionally. Paul and his wife purchase an 180 acre ranch in 2016 and enjoy keeping it full of animals.
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